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Lindell postpones water-rate changes while state grant and new well lock in payments
Summary
Officials said a state grant tied to a new municipal well requires minimum monthly payments and one year of operation before Lindell can revisit residential water rates; adding a commercial customer could generate roughly $62,000 annually but does not allow the town to sell water outright.
The Lindell Town Council was told Monday that a state grant tied to the town’s new well requires a minimum monthly payment that prevents any restructuring of residential water rates for at least one year, officials said.
Chair (S5) said the town accepted the grant with payment conditions and that "there's really nothing we can or will do for a year" to change rates. The council’s short-term plan is to operate the well for a year, measure actual town usage and then consider rate changes after state verification.
Why it matters: The condition is a contractual requirement of the state-funded well project and limits the council’s ability to reduce base rates or reassign the required monthly payment. Council members said the restriction was the trade-off for obtaining grant funding for the new well.
Council members discussed adding Magnum as a commercial customer — which would be metered separately and billed at a commercial rate — and emphasized the town cannot legally sell or lease water but can add customers. Chair (S5) said previous correspondence estimated about $62,000 in annual revenue from commercial customers; if new industrial uses proceed, that figure could rise.
A council member (S2) noted the rate-comparison data on hand were compiled from older sources and likely reflect 2023 figures rather than 2024; the member said staff will prepare a revised chart of small towns for next month’s meeting so the public can see how Lindell compares.
Operational timeline: Council members said the new well and pump house are scheduled to be finished by year-end and that, from the start of pumping, the town will have one year to establish accurate water usage numbers before reopening rate discussions. Chair (S5) also referenced a longer timeline tied to moving away from legacy wells, saying the town has a multiyear window to complete related work.
Next steps: Staff will present updated comparative data at the next meeting. Any formal rate change will require state review and a public hearing; no vote on rates is expected before the one-year post-operation measurement is complete.
Reporting note: Quotes and facts above are drawn from the council’s meeting transcript and statements by the Town chair and council members during the water-system discussion.
